Threadneedle plans to launch the UK Absolute Alpha Fund in quarter four, reinforcing its absolute return fund range.
The Ucits III fund will give co-managers Mark Westwood and Chris Kinder increased flexibility in strategy and fund positioning.
Westwood says: “This is an exciting time to leverage our expertise in delivering absolute returns for our clients. With the dislocations of the past few years still fresh in investors’ minds, the opportunity to add value through fundamental and valuation analysis on a long/short basis remain considerable. The Threadneedle UK Absolute Alpha Fund will use the process and techniques that we have successfully employed over the years in our Cayman-domiciled absolute return fund.”
The fund is expected to launch in early quarter four 2010.
Along with the launch, Threadneedle is updating certain investment vehicles to refine its absolute return range, as a result of feedback from investors regarding investment vehicles and individual strategies, and in anticipation of reform to the way products can be distributed in Europe.
Consistent with this and with the new fund launch, the existing Threadneedle UK Crescendo Fund will close in October.
The UK Absolute Alpha Fund will use a similar process and resources as the Threadneedle UK Crescendo Fund. The portfolio will primarily take long and short positions in UK equities and will aim to generate the majority of performance from stock selection.